Despite "smoking gun" U.S. is unlikely to act as it has a long history of tolerating China's abuse

It seemed like just another Chinese propaganda video, designed to promote the fighting spirit of soldiers in China's People's Liberation Army and rouse anti-American sentiments. The Chinese narrator boldly proclaimed, "America is the first country to propose the concept of a cyberwar, and the first country to implement it in a real war."

I. Proof of Chinese Government Cyber-Attacks

But, as first noted by TheEpochTimes, the Chinese government unwittingly dropped a bomb shell when it used a clip of what it must have thought was stock footage.

Between 12:57 and 13:05 in the video, the B-roll clip rolled, revealing what is most westerners' first glimpse at a live Chinese cyber-attack on the U.S. Videographic proof that recent cyber-attacks were indeed the work of the Chinese government had never been found -- until now.

At the start of the clip the reflection of a PLA officer in uniform can be seen. We're not sure what the text up top or below says, but if you speak Chinese please let us know...

The officer quickly leaves that screen, using a keyboard shortcut....

...and fires up an application whose creator is identified in GUI text as the Electrical Engineering University of China's People's Liberation Army. The GUI panel contains the text "Choose Attack Target" and offers the user a choice of what reportedly are multiple Falun Gong websites (a forbidden Chinese spirtual movement) (feel free to chime in if you can read this...).

...more targets....

The text selected reads "Minghui.org" -- a major Falun Gong homepage -- and the IP address selected is a 138.26.x address, an IP block that belongs to the University of Alabama. The particular IP in question, according to The Epoch Times has not been used since 2010, with IP staff recalling it may have been used to host the homepage of a Falun Gong practitioner, who hosted meetings on campus.

The "attack" button is pressed in the lower left-hand corner, and the video fades out, as presumably a distributed denial of service attack (possibly botnet assisted) is carried out.

So there it is -- straight from the horse's mouth, as they say, proof that China is indeed attacking entities in the U.S. online.

The video is available here, beware the rewind capability seems to be messed up, so just skip to around 10 minutes if you want to see the good part.

Likewise there's a sort of grim complacency in the corporate world. Google, Inc. (GOOG) claims to have its source code stolen by Chinese hackers, but has been forced into silence by the Chinese government. The message is clear -- put up with abuse, or get out of the world's biggest market.

Similarly, antivirus firm McAfee last month aired a report on the world's largest series of cyber-attacks dubbed "ShadyRAT", which it said were perpetrated by a nation state. However, when faced with the overwhelming public assumption that the attacker was China, McAfee equivocated refusing to confirm that the attacks came from China.

What reason would McAfee have for keeping the identity of the attacker in history's most financially damaging cyberattack a secret? Well, its parent company, Intel Corp. (INTC) has invested much in research and development and production facilities in China -- facilities it doesn't want to lose by alienating the local government.

The few people and organizations who do speak out are largely ignored.

Recent attacks on American advocacy siteChange.org, who launched a campaign to free imprisoned Chinese artist Ai Weiwei, led to Secretary of State Hillary Clinton admonishing China. But at the end of the day no decisive action was taken by the executive branch or Congress.

In truth if you look back in history the USA rarely has a direct response, even to a direct provocation (i.e. the USS Pueblo and NK). We (USA) typically act covertly or financially unless a strong reaction is part of a larger agenda (picture). And this is true of most 1 or 2 world countries.